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Alarm over construction output fall

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Construction concern: Material prices rise with uncertainty

THE BEAST from the East, rising costs and Brexit are to blame for the sharp drop in construction output, the Federation of Master Builders (FMB) has said in response to the April 2018 construction ​o​utput figures published by the Office for National Statistics (ONS).

Commenting on the construction output figures for April 2018, Brian Berry, Chief Executive of the FMB, said: “The UK construction sector declined by 3.4% in the three months from February to April compared with the previous three months. This is the biggest fall since the latter stages of the recession in August 2012. The Beast from the East has certainly played its part as it forced many construction sites to close in March. Indeed, builders were reporting that it was too cold to lay bricks.”

Berry continued: “Alongside the cold snap, the drop in construction output can also be attributed to rising costs for construction firms large and small. While wages are continuing to rise because of the acute skills crisis in our sector, firms are also feeling the pinch thanks to increased material prices. The depreciation of sterling following the EU referendum has meant bricks and insulation in particular have become more expensive.

“We expect material prices to continue to squeeze the construction industry with recent research by the Federation of Master Builders showing that 84 per cent of builders believe that they will continue to rise in the next six months.”

Berry concluded: “In the medium to longer term, with nine months until Brexit-Day, the future is uncertain for the UK construction sector. The Government is still to confirm what the post-Brexit immigration system will look like. The construction sector is largely reliant on accessing EU workers with more than 8 per cent of construction workers coming from the EU. It is therefore imperative that the sector knows how, and to what extent, it can recruit these workers post-Brexit.”

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RWE launches consultation on Pembroke’s new Green Hydrogen plant

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RWE has announced plans to establish a state-of-the-art green hydrogen facility next to the Pembroke Power Station.

The proposed project will see the construction of a 110 MWe electrolyser plant capable of producing approximately two tonnes of hydrogen per hour, a cleaner alternative energy source that promises to significantly reduce carbon emissions in the area.

Starting Monday, RWE will open a pre-application consultation, inviting local residents and stakeholders to share their insights and opinions on the plans. This consultation period will conclude on 20 May 2024. Interested parties are encouraged to review the details and submit their feedback online, ensuring community input is integrated into the development process.

The hydrogen produced at the Pembroke Green Hydrogen plant will serve as a vital component in reducing reliance on fossil fuels for local industries, substituting them with a cleaner option that produces only oxygen as a by-product. With the capacity to cut approximately 93,000 tonnes of CO2 emissions annually—equivalent to removing 18,600 cars from the road—the facility aligns with the UK Government’s target of achieving 6 GW of green hydrogen production by 2030.

Richard Little, Director of the Pembroke Net Zero Centre, emphasized the importance of local support for the initiative: “To secure the future of industry in South Wales, and safeguard local jobs, we need to provide clean energy alternatives, locally. Our proposals for green hydrogen generation will do just that, helping to reduce CO2 emissions in local industrial activities by approximately 93,000 tonnes every year.”

RWE’s vision for the Pembroke Net Zero Centre, where the plant will be located, includes a diverse array of sustainable technologies, such as battery energy storage systems and floating offshore wind. The development is expected to bolster Pembrokeshire’s economy by preserving existing jobs and creating new opportunities through the construction and operational phases of the project.

Community members are invited to contact the project team, provide feedback via the project website, or arrange private discussions to further understand the project’s scope and impacts. This consultation offers a crucial opportunity for residents to influence a project that stands to reshape the region’s industrial landscape while advancing towards a sustainable future.

RWE, the UK’s largest power producer and a leader in renewable energy generation, continues to expand its green hydrogen capabilities across the country, targeting 2GW of electrolyser capacity in its core markets by 2030.

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Two firms, one in Wales, fined £340k for aggressive marketing calls

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THE Information Commissioner’s Office (ICO) has fined Cardiff-based Outsource Strategies Ltd (OSL) £240,000 and London-based Dr Telemarketing Ltd (DRT) £100,000 after the companies made a total of almost 1.43 million calls to people on the UK’s “do not call” register, the Telephone Preference Service (TPS).

The calls, all made between 11 February 2021 and 22 March 2022, resulted in 76 complaints to the ICO and the TPS. People who complained said the callers were aggressive and used high-pressure sales tactics to persuade them to sign up for products. The ICO investigation also found evidence that both companies were specifically targeting elderly and vulnerable people.

Andy Curry, ICO Head of Investigations, said: “All the people targeted by these nuisance calls should not have been called in the first place. They had all taken action to protect themselves by registering with the UK’s “do not call” register.

“It is unacceptable they were repeatedly interrupted and subjected to aggressive and unpleasant marketing, particularly as some of the victims told us they were people with vulnerabilities. I would like to thank those who took the time to report to us, as this helped our investigation to bring these two companies to account.

“All companies engaging in direct marketing should take note. If you flout the law, you can expect the ICO to use the full force of its regulatory powers against you.

“And, as in this case, it doesn’t matter how complicated the network of companies and individuals are, we will work through the evidence to find and take action against the perpetrators of these unlawful calls to protect the public.”

Details of the unwanted calls: “My husband took the call. He has communication difficulties – he is vulnerable and doesn’t understand not to answer the telephone. I suspect he has been sold stuff by these companies in the past. For health reasons, I need to stop them ringing …”

“We’ve requested numerous times to be taken off the list but to no avail. The telephone number today is one of several different numbers that they use. This has now become harassment of two senior citizens.”

“Tried to get me to join the Irish lottery and probably wanted my bank details. It made me annoyed and … anxious. I’m getting sick up to the back teeth of these types of calls. I even get them on my UNLISTED [sic] number.”

“… He had all my personal details which he said he had got from [redacted] … He was trying to persuade me to buy cut-price lottery tickets for the Irish Lottery … I said I would not give any card details over the phone as I had no way of checking where he was calling from. I asked him to send me an email so I could carry out due diligence on this offer and the company. He said he could not do that unless I bought the tickets first. I was not prepared to do this and so ended the call. When I checked the number, Google seemed to suggest this number is associated with a scam company. I was concerned because [redacted] … target older people who could get confused and be talked into something like this more easily.”

Details of each fine

Outsource Strategies Ltd, based in Cardiff, made 1,346,503 unwanted marketing calls between 11 February 2021 and 22 March 2022 to numbers registered with the TPS. The ICO received 74 complaints from people variously saying they received repeated calls despite requests to stop and that the callers were aggressive.

During the investigation, OSL blamed TPS screening responsibility on its contracted partners and stated it also had internal systems in place to ensure this did not happen. The ICO found this to be incorrect, as 141,914 calls were still made to people marked as “do not call” on its own systems.

The investigation also uncovered that OSL Directors were involved with a separate company previously fined by the ICO. OSL has also been issued with an enforcement notice. OSL has appealed the monetary penalty notice and the enforcement notice.

Dr Telemarketing Ltd, based in London, made 80,240 unwanted marketing calls between 11 February 2021 and 22 March 2022 to numbers registered with the TPS. A total of two complaints were received. The highly exploitative unwanted calls were all made regarding Lotto Express and were targeted at vulnerable people to maximise profit.

During the investigation, the ICO uncovered what appeared to be a network of five people and eight companies all involved in deliberately making the unwanted calls. DRT argued opt-in details were supplied by its business partner and screening was provided by another company. The ICO found there was no mechanism in place to identify and mitigate against making unwanted calls and that screening was not contracted to cover all the data providers involved.

Despite repeated attempts to communicate with the company, DRT stopped engaging with the ICO during the investigation and failed to provide a satisfactory explanation for the Lotto Express calls. DRT has also been issued with an enforcement notice. DRT has not paid the fine or appealed the notice therefore the ICO is commencing financial recovery action.

ICO’s work to tackle nuisance communications 

The ICO enforces the Privacy and Electronic Communications Regulations 2003 (PECR), which cover the rules for organisations wishing to make direct marketing calls, texts or emails. 

The ICO’s direct marketing guidance makes it clear that organisations acquiring marketing lists from a third party must undertake rigorous checks to satisfy themselves that the personal information was obtained fairly and lawfully. Organisations must:

explain to people why they want to use their information;
tell people if they will share information with other organisations; and
make people aware of their data protection rights.
The ICO has issued more than £2.59 million in fines against companies responsible for nuisance calls, texts and emails since April 2023. Some of these investigations began with a single complaint from a member of the public. 

For more information about the ICO’s work to tackle nuisance calls, emails and texts visit ico.org.uk/nuisancecalls. 

Advice for the public 

To help you, your friends and relatives stop receiving unlawful marketing calls, texts or emails you can: 

Register landlines and mobile numbers with the Telephone Preference Service (TPS) and the Corporate Telephone Preference Service (CTPS) free of charge. The TPS and CTPS is a register used by legitimate marketing companies to identify people and businesses that have said they don’t want to receive marketing calls. Alternatively, you can tell the company directly that you do not wish to be contacted. 
Report the receipt of unsolicited marketing text messages received on your mobile to the Mobile UK’s Spam Reporting Service by forwarding the message to 7726. 
Refer concerns that you or someone you know has been the victim of fraud to Action Fraud (in England, Northern Ireland and Wales) and Police Scotland (in Scotland). You can refer wider concerns about a business’ practices to Trading Standards. Report any abandoned calls that you receive to Ofcom. 
Ask your telephone network about call blocking solutions they may be able to offer. Many of these services are provided free of charge.
Report nuisance calls, texts or emails to the ICO via our website. 

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Occupier demand for commercial property in Wales rises for first time in two years

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OCCUPIER demand for commercial property in Wales rose for the first time in almost two years according to the latest Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor, as demand for industrial space remained strong and demand for retail space turned positive for the first time since well before the pandemic.

A net balance of 8% of surveyors in Wales reported that occupier demand at all-sector level had risen through Q1 2024. Broken down by subsector, demand for both industrial and retail space rose (net balances of 31% and 9% respectively), with retail having risen for the first time since 2017. A net balance of -15% of Welsh respondents reported that demand for office space had fallen.

Looking at overall investor demand, a net balance of -13% of respondents in Wales reported a fall. Whilst this balance remains in negative territory, it is an improvement on -32% in the previous quarter due to a less negative picture for retail. Looking at the subsectors, investor enquiries for industrial space fell flat, whilst both office and rental space saw declines, with net balances of -31% and -9% respectively. The later was an improvement from -47% in the previous quarter.

Regarding capital value expectations, on the three-month outlook, a net balance of 7% of respondents expect capital values to rise over the next quarter, the highest this balance has been since mid-2019. A net balance of 38% of respondents anticipate that capital values for industrial space will rise over the next three months, whilst net balances for both retail (-9%) and office (-8%) space remain more subdued. On the twelve-month picture, surveyors in Wales anticipate that capital values will fall flat over the next year.

With regard to rental expectations, a net balance of 4% of surveyors in Wales expects rents to rise over the next quarter. A net balance of 46% of Welsh respondents anticipates that rents will rise for industrial space, whilst rents for office and retail space are expected to fall (net balances of -8% and -27% respectively). On a 12-month horizon, surveyors anticipate that rents will fall at all-sector level with -5% of respondents expecting a decline.

Chris Sutton of Sutton Consulting Ltd in Cardiff commented: “Industrial rents continue to strengthen for Grade A new-build floorspace at St Modwen Park, Newport with £8.75 per sq. ft achieved and quoting rents now over £9.00 per sq. ft. Only three years ago, rents on the same estate were £6.50 per sq. ft. The office market continues to adapt to changing working patterns with occupiers shifting to higher quality floorspace, with a focus upon Cardiff city centre. The lack of shovel-ready employment sites along the M4 corridor is a constraint on the economy.”

Commenting on the UK picture, RICS Senior Economist, Tarrant Parsons, said: “Although sentiment remains relatively cautious regarding the near-term outlook across the UK commercial property market, the latest survey results do show some signs of recovery coming through. For one, occupier demand growth now appears to be gaining traction slightly, supported by the broader economy seemingly returning to growth following a brief recession late last year. Moreover, the prospect of interest rate cuts later this year have already led to an easing in credit conditions across the sector, marking the first such improvement in our feedback since 2021.

This should begin to support investment market activity as the year wears on, which, in turn, will likely see a more stable picture emerge for headline capital values.”

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